The Importance of Lifetime Income

In today’s aging society, the widespread assurance of lifetime income is the single most important step needed to improve the retirement security of older Americans. The American Academy of Actuaries believes that retirement security can and should be significantly improved by the promotion of lifetime income, and that actuaries have an important role to play. The Academy has identified lifetime income as a top public policy issue and strongly supports initiatives that will lead to more widespread use of lifetime income options.

Academy Releases Lifetime Income Quiz

The Academy released a quiz on lifetime income that poses questions and answers to help consumers understand the issues and concepts behind planning a sound lifetime income strategy.

Background

In August 2011, the Academy’s Public Interest Committee (PIC) sought input from the membership on a proposed statement advocating stronger public policy support for lifetime income solutions for Americans. The membership response was strong, encouraging, and helpful in determining Academy direction. The PIC ultimately concluded that the actuarial profession has much more to say than could be captured in a single, brief position statement.

The Academy expanded the lifetime income public interest statement to a longer-term initiative to:

Promote meaningful discussions both within and outside the profession;

Academy Lifetime Income Public Statements

The Academy's position statement in support of policy and educational initiatives to increase retirement income options within employer-sponsored defined contribution (DC) plans. (October 31, 2017)

Joint Academy, Institute and Faculty of Actuaries (U.K.), and Actuaries Institute of Australia white paper, Retirement Readiness: A Comparative Analysis of Australia, the United Kingdom, and the United States, showing that people in the three countries struggle with planning for retirement because they often aren’t equipped to address complex questions. Recommendations in the report include targeted financial education, greater use of default features in private retirement plans, and ensuring that public pension and social insurance systems are sustainable and capable of providing adequately for those who depend on them most. (October 12, 2017)